1
New CLO formation could be curbed, as a result, raising borrowing costs for corporations.
2
Morgan Stanley, the second busiest arranger of new CLOs, helped price the deal for Oak Hill.
3
Other fund managers in Europe are likely to start making redundancies if no new CLO funds can be raised.
4
However, given the volume of existing CLOs reaching the end of their re-investment periods, net new CLO demand remains negative.
5
It also limits the hit to CLO junior equity holders' returns, which would make it harder to issue new CLOs.
6
Since early last year, triple A spreads have been consistently compressing, an indication that conditions for new CLO issuance are improving.
7
If the difference between actual Libor rates and minimum floor narrows, CLO equity returns would fall and potentially lead to less new CLO activity.
8
The main issue is the lack of loans to put in new CLO warehouses after volume hit a 10-year low in the first quarter.
9
Moody's Investors Services is seeing an uptick in these provisions in new CLOs, according to Leon Mogunov, an associate managing director at the ratings firm.